If you count these programs, the total national debt shoots well past $100 trillion. Some analysts even peg the actual debt as high as $200 trillion. That’s 10 times the U.S. economy’s annual economic output.

In short, the government is hopelessly insolvent. It has more debt than it could ever pay back.

Sooner or later, this mountain of debt will destroy the U.S. financial system. The “good news” is that this crisis could be years away.

The bad news is we have even more pressing problems.

• Trump is agitating America’s biggest creditors…

If you’ve been watching the news, you know what we’re talking about.

In the last few weeks, Trump has accused Japan and China of manipulating their currencies. On Friday, he called China the “grand champions” of currency manipulation.

Now, Trump may have a point. But let’s be honest.

He’s not doing America any favors by attacking its largest creditors.

If he keeps this up, China and Japan could retaliate by selling even more Treasurys.

This could cause Treasury yields to soar, which happens when bond prices fall.

This bull market survived three recessions, the dot-com bubble, and the last housing crisis.

When an asset does this well for this long, investors become complacent.

They buy it without thinking. They act like nothing can go wrong.

But almost nothing is going right for the Treasury market these days.

Unless this changes fast, people who own Treasurys could be in serious danger.

If you haven’t already, we encourage you to get out of Treasurys now.

Chart of the Day: Another Reason to Own Gold

Central banks are loading up on gold.

Today’s chart shows how much gold central banks bought every year since 1995.

You can see they sold more than 10,000 tons between 1995 and 2009.

Since then, central banks have been buying as much gold as they can get their hands on.

Now, we’re not fans of central bankers. But we’re also not fools…

You see, central banks run the global monetary system. They have deep pockets.

In other words, you don’t want to bet against them. You want to invest alongside them.

And right now, they’re loading up on gold.

We don’t expect this to change anytime soon.

Think about it. If Japan, China, and other countries keep selling Treasurys, they’re going to end up with a lot of extra cash. If they use just some of that money to buy bullion, the price of gold could soar.

This is just one more reason to own gold for the long haul.

Courtesy: Justin Spittler

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